Mobileye sees annual revenue below targets on weak China demand for its self-driving tech
Business
Mobileye sees annual revenue below targets on weak China demand for its self-driving tech
(Reuters) - Mobileye Global forecast fiscal 2025 revenue below Wall Street expectations on Thursday, anticipating fewer shipments of its assisted driving technology to China, sending its shares down more than 12% in premarket trading.
The company forecast revenue between $1.69 billion and $1.81 billion, compared with the average analyst estimate of $1.94 billion, according to data compiled by LSEG.
Shipments for the company's technology to China have been pressured by competition from domestic firms developing similar self-driving software at lower costs.
Mobileye said in December its major automotive customers were losing market share in China as domestic manufacturers are now offering less-expensive battery vehicles in the region.
Meanwhile, the Chinese government has reintroduced some EV subsidies to encourage citizens to adopt environment-friendly vehicles.
Mobileye reported fourth-quarter revenue of $490 million, beating estimates of $477.8 million.
Although the company beat market expectations for revenue, the numbers fell 23% from a year earlier, due to less demand for its EyeQ chips as major customers work through excess supply.
On an adjusted basis, the company earned 13 cents per share, compared with estimates of 11 cents. It also reported a 30% fall in gross profit in the quarter.
